[Sightseek]

Originally Posted by Cannon Shell

The biggest problem with horse auctions lies with the autions themselves. The fact is that you do not even have to be registered to bid on a horse nor does the sales company even keep track of the bids outside of the final one. As a matter of fact the bid spotting process often leads to phantom bids being accepted such as a case where two bid spotters call out the same bidder. But in an unregulated forum that the auctions are cheating and fraud are unusually easy to accomplish.
I think its important to understand that very rarely are all bids live. Most of the time a consignor will assign a Reserve price and then have an agent bid the horse up to right below the price. So the unknowing bidder is actually not bidding against a live buyer, he is said to be bidding against the reserve. Being that you dont know what the reserve is beforehand sometimes the consignors agent will play a little russian roulette by continuing to bid past the reserve, known as running the bid up. This is a fact of life in the auction game like it or not. Often the sale is a bogus one such as when Scipion was sold at Saratoga a few years ago. Bred by Mrs. Payson, he was purchased by P. Biancone, agent. He ran and continues to run as the property of Mrs. Payson. There was no actual sale but he was showcased in the Bloodhorse as the sales topper.

All of these things and the other little issue raised by mattress mac could be eliminated if the sales companies would sell horses like art is sold, numbered, registered bidders. the bids could be tracked and recorded so when there is a problem like this there would be a record of who bid on who. Considering the fact that a billion dollar business is so unregulated it is shocking hat it has taken so long for cases like these to be unearthed. Also all agents that are given bidding privilidges should be licensed and subject to loss of license if found guilty of fraud.

But, alas it wont happen because that would decrease the price of horses therefore decreasing the profitability of those in charge of this sport, the breeders, consignors, and sales companies along with several powerful agents and trainers.

Funny thing about this business is that all the things that would make the sport (racing) healthier like dropping averages at the sales are thought to be horrific to the Lexington and Ocala crowd who really are the profiteers in this industry. Like Joel said if prices keep going up and expenses keep going up and scandals (sales and drugs) keep popping up and purses are stagnant, then how long until the bottom drops out?? Despite the press we could all get along very well without The Arabs, Coolmore and Storm Cat.

Excellent ideas.

I'm not sure if this is correct, but buying at auction is the only practice where 'insider trading' is allowable and everyone deep in the game is 'in the know'...I think the approach taken for selling art could indeed stop it.